“I still believe that for good business analysts a concentrated portfolio is a good strategy combined with a long term horizon. Once again, the secret to success in following the formula strategy is patience, a quality in short supply for both professionals and individual investors alike. I think investors should have a large portion of their assets in equities over time.” ThinkingShouldBelieveLongStillsIndividualTermSecretQualityShould HaveStrategyFollowingLong TermHorizonAssetsFormulasInvestorsPortionsEquityAnalystsI Still BelieveSecret To SuccessPortfoliosGood Business Author:Joel Greenblatt
“If I plug my estimates into the Magic Formula, and it comes out cheap, that's good.” IfsMagicFormulasPlugs Author:Joel Greenblatt
“The big picture is: the main thing you should be concerned about in the future are incremental returns on capital going forward. As it turns out, past history of a good return on capital is a good proxy for this but obviously not foolproof. I think this is an area where thoughtful analysis can add value to any simple ranking/screening strategy such as the magic formula. When doing in depth analysis of companies, I care very much about long term earnings power, not necessarily so much about the volatility of that earnings power but about my certainty of "normal" earnings power over time.” ThinkingShouldLongBigsCarePastValuesTurnsTermSimpleCompanyMagicReturnNormalAreasConcernedStrategyAddDepthCertaintyAnalysisLong TermThoughtfulFormulasI CareEarningBig PictureScreeningRankingProxyVolatilityFoolproof Author:Joel Greenblatt
